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Home / Racism At Morgan Stanley? – Outside Recruiter Sues Morgan Stanley for Alleged Race Bias

Racism At Morgan Stanley? – Outside Recruiter Sues Morgan Stanley for Alleged Race Bias

July 10, 2023 Broker Complaints

Morgan Stanley was sued by an external recruiter who alleges the bank discriminated against him because he is Black, underpaying him for commissions earned in putting diverse applicants at the bank — even though the firm treated them with racial bias as well.

According to Anthony Fletcher’s complaint, the bank engaged its executive search business, which specializes in diversity, in 2015 to strengthen its efforts to attract ethnically diverse candidates. According to the claim, which was filed in federal court in Chicago, the company employed half a dozen African American individuals he nominated within a year. 

About the Lawsuit –

Despite his first success, he claims that the Wall Street business employed a number of his prospects without his knowledge, robbing him of commissions. When he protested, his rate was reduced from 33.3%, the industry standard, to 20%, he alleges. According to the lawsuit, Morgan Stanley terminated his contract last year.

Morgan Stanley stated the suit was without substance.

“We absolutely reject the claims of this complaint, which are based on a fee dispute with a third-party recruiter whose contract was terminated,” the business stated in a statement. “Morgan Stanley remains committed to building an inclusive and varied workforce.”

Ben Crump is one of the lawyers representing Fletcher. He won a $27 million settlement with Minneapolis for the family of George Floyd after a police officer murdered him in 2020, and a $12 million settlement for the family of Breonna Taylor, who was killed in Louisville, Kentucky, in 2020 by police executing a “no knock” warrant at her home.

Morgan Stanley, Ex-Associate End Race, Sex, Disability Bias Suit

According to the claim, a Morgan Stanley executive director asked Fletcher to assist him in making a diverse recruitment for a client service associate. When Fletcher asked what types of skills he was looking for, the executive director allegedly said the candidate must be “willing to laugh at his rude and vulgar remarks, and leaned on stereotypes of race about a Black CSA’s ‘cultural fit,’” and requested that the applicant not look “like they just came into the office from a late-night party.”

According to Fletcher, his Black job hopefuls were sometimes obliged to take lower-level positions than those they had previously held at a rival. In contrast, he claims that Morgan Stanley consistently employed White people for lateral roles or higher positions than their prior work.

He alleges Morgan Stanley paid him less for his job because of his ethnicity, and that despite being a “preferred vendor,” he was treated worse than non-Black third-party recruiters. Morgan Stanley terminated his position two weeks after a meeting in which he reviewed his treatment and grievances, he claims.  

According to the claim, Fletcher reported the abuse to the firm’s board of directors and Chief Executive Officer James Gorman but never received a response. 

Anthony Fletcher v. Morgan Stanley & Co., 23-cv-02769, United States District Court for the Northern District of Illinois (Chicago).  

The original article is posted on Morgan Stanley Is Sued by Outside Recruiter Alleging Race Bias – Bloomberg

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